CORTECS INTERNATIONAL ESTABLISHES CLINICAL LINK TO DEVELOP CORTECS' ORAL FORMULATION OF INSULIN.

LONDON--(BUSINESS WIRE)--June 24, 1996--Cortecs International ("Cortecs") (NASDAQ:DLVRY)(LSE:COR)(ASX:CRI) today announced that it has entered into an agreement with Osteometer Biotech A/S and with the Centre for Clinical and Basic Research ("CCBR") for the clinical development of an oral formulation of insulin for the management of diabetes mellitus. Insulin is a peptide, which currently has to be injected in spite of many efforts to find improved delivery methods since its discovery in the 1920's.

Under the agreement, Osteometer and CCBR will, in return for a royalty on sales, organize and execute at their own cost the clinical test of oral insulin to generate the clinical data required for registration applications in Europe.

During the last five years Cortecs has been working to optimize its oral formulation of insulin with the objective of achieving more efficient and consistent delivery. In diabetes, consistency of delivery can be important and, until recently, the Company's focus had been primarily the advance of oral calcitonin for the treatment of osteoporosis. During 1996, through further advances in its technologies, the Company has been able to achieve in pigs a high level of consistency with oral insulin as well as further improving efficiency and has therefore decided to re-commence testing in humans this summer.

On April 10, 1996 Cortecs announced positive results of the first Phase II clinical trial in Europe of the oral delivery of another peptide, its oral calcitonin formulation for the treatment of osteoporosis.

Estimations of diabetes prevalence around the world have more than tripled since the mid-1980s. In 1985 WHO estimated that 30 million people around the world were afflicted. By 1989, the figure had risen to 50 million. In 1991 WHO stated that "an apparent epidemic of diabetes has occurred - or is occurring - in adult people throughout the world" and the figure is now estimated to be 100 million. The cost of managing diabetes has risen sharply and can take up to as much as 10% of national health budgets. Diabetes is considered the third most expensive disease state in man behind cancer and heart disease costing the US over $90 billion annually.

Diabetes is generally divided into two classes, known as Type I (IDDM) and Type II (NIDDM). Type I patients require insulin to survive, Type II patients may be managed with diet and drugs other than insulin, although insulin may form a part of the regime in some patients and may be extensively used in Type II patients were it to become available in the oral form. Type II patients make up over 80% of all diabetics. Current sales of insulin by injection are estimated at US$1.8 billion worldwide.

Dr. Michael Flynn, President and Executive Director of Cortecs International, commented: "We are very happy with our existing agreements with Osteometer and CCBR which provide a cost-effective mechanism for each organization to concentrate on its special strength while leaving Cortecs free to enter commercial agreements with substantial marketing partners. We believe that positive results in human tests with Insulin would further demonstrate the enabling aspects of our delivery technologies, as well as providing a substantial opportunity to improve the management of diabetes. The move from animals into man, is a large step but, because of the similarity of size and of the structure of the small intestine of pig and man, and the new flexibility created by our recent 46 million pound fund raising we can advance with confidence into human tests. Our first test will be in healthy volunteers after which we will involve patients with Type II diabetes."

Professor Claus Christiansen, Director of Osteometer and of CCBR, said: "If insulin can be made orally effective with good consistency, then it would surely have a major place in the future management of diabetes. Cortecs has persevered with its insulin program for many years and recent tests in pigs give reason for some optimism that the program could succeed. If effective consistent delivery is shown in the first human test, the probability that this program will succeed becomes very high."

Cortecs is a British-based company quoted on the London Stock Exchange, the Australian Stock Exchange and on NASDAQ. The Company specializes in the development of new pharmaceutical delivery systems and point-of-care rapid diagnostics which provide the opportunity to advance the management of serious diseases such as:

OSTEOPOROSIS

Oral Calcitonin - an oral therapy for the prevention of bone breakdown. In Phase II.

Osteosal - a rapid doctors' office test in collaboration with Osteometer to detect increased bone breakdown indicating the risk of the disease osteoporosis and also to monitor the adequacy of therapy. In development.

HELICOBACTER PYLORI

Helisal - a rapid doctors' office whole blood test for the detection of Helicobacter pylori in the market and a rapid saliva test in development.

HELICOBACTER PYLORI

Oral Therapeutic Vaccine in development to stimulate immunity.

Oral Therapeutic in research to improve eradication results.

DIABETES

Oral Insulin - human tests planned in 1996.

Glycosal - a rapid doctors' office test in collaboration with Exocell to assist in the management and identification of diabetics. In development.

CYSTIC FIBROSIS

Pseudostat - oral therapeutic antigens to treat and prevent lung infection with Pseudomonas aeruginosa. Entering Phase II trials in 1996.

INFLUENZA

Flustat - an oral vaccine against influenza. Entering human trials in 1996.

THRUSH

Moniliastat - an oral therapeutic vaccine against vaginal thrush. Enters human trials in 1996.

DIARRHOEA

Adept - an oral system to treat diarrhoea without antibiotics. Entering Phase II trials.

MALE HORMONE DEFICIENCY

Halo Testosterone - an oral male hormone replacement therapy in development to treat male hypogonadism.

Cortecs also markets a range of ethical and OTC medicines and diagnostic products.

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NOTE TO EDITORS: Press releases and other Cortecs International Limited information are available on the Cortecs International Limited web site: http://www.cortecs.com.

CONTACT: Mr. Glen Travers, Executive Chairman

Cortecs International

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Buchanan Communications

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